By Cristal Cody
Chicago, Feb. 28 – NextEra Energy Capital Holdings, Inc. priced $1 billion of 6.7% series Q junior subordinated debentures due Sept. 1, 2054 (Baa2/BBB/BBB) at par on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The notes were initially talked in the 7.125% area, according to a market source.
The rate will reset for the first time on Sept. 1, 2029 to the five-year Treasury plus 236.4 basis points. Resets will occur on five-year anniversaries thereafter.
NextEra Energy Capital may redeem some or all the debentures, in whole or in part, at par during the period beginning 90 days prior to the first interest reset date and ending on that date and after on any interest payment date.
The notes are callable at par due to taxation reasons or at 102 due to a rating agency event.
BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, RBC Capital Markets, LLC and Wells Fargo Securities, LLC are the joint bookrunners.
Citigroup Global Markets Inc., Commerz Markets LLC, Credit Agricole Securities (USA) Inc., Scotia Capital (USA) Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc. and U.S. Bancorp Investments, Inc. are also bookrunners.
The company will add the net proceeds from the sale of the debentures to its general funds and intends to use its general funds to fund investments in energy and power projects and for other general corporate purposes, including the repayment of a portion of its outstanding commercial paper obligations. As of Feb. 26, NextEra Energy Capital had approximately $4.3 billion of outstanding commercial paper obligations, which had maturities of up to 44 days and annual interest rates ranging from 5.62% to 5.77%.
The company noted that it was conducting a concurrent offering of new exchangeable notes.
The debentures will be guaranteed by parent company NextEra Energy, Inc.
NextEra Energy is an energy company based in Juno Beach, Fla.
| Issuer: | NextEra Energy Capital Holdings, Inc.
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| Guarantor: | NextEra Energy, Inc.
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| Amount: | $1 billion
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| Issue: | Series Q junior subordinated debentures
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| Maturity: | Sept. 1, 2054
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| Bookrunners: | BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, RBC Capital Markets, LLC, Wells Fargo Securities, LLC, Citigroup Global Markets Inc., Commerz Markets LLC, Credit Agricole Securities (USA) Inc., Scotia Capital (USA) Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc. and U.S. Bancorp Investments, Inc.
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| Trustee: | Bank of New York Mellon
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| Counsel to issuer: | Morgan, Lewis & Bockius LLP and Squire Patton Boggs (US) LLP
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| Counsel to underwriters: | Hunton Andrews Kurth LLP
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| Coupon: | 6.7% initial rate; resets on Sept. 1, 2029 to five-year Treasury plus 236.4 bps; resets on five-year anniversaries thereafter
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| Price: | Par
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| Yield: | 6.7%
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| Call features: | At par in 90 days before first rate reset; at par on semiannual interest payment dates going forward; at par for tax reasons; at 102 for rating agency event
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| Trade date: | Feb. 27
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| Settlement date: | March 1
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
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| Price talk: | 7.125% area
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| Cusip: | 65339KCW8
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